Digital Transformation In Media & Entertainment Industry – Impact & Trends

Embracing the Digital Transformation in Media & Entertainment
March 17, 2021 | 6 min read

Digitization has completely changed how we consume, connect, and communicate today. From downloading apps for quick services and products to streaming content on smart TVs or interacting with mixed reality devices, it’s no wonder that the media and entertainment industry has been at the cusp of rapid transformation. 

In recent years, digital disruption has upended several traditional business models within the media and entertainment (M&E) industry as consumer expectations are shifting drastically and driving companies to quickly identify ways to deliver content with the effective use of new technologies. 

With the outbreak of COVID-19, the media and entertainment sector moved swiftly in response to the pandemic by offering free entertainment subscriptions, producing online concerts virtually, e-gaming, and releasing movies online, to name a few. As the world adjusts to a new normal, consumer behavior is rapidly evolving. Our social lives have moved online, and entertainment consumption has risen notably within the at-home segments of television, online gaming, and over-the-top (OTT) content. Certainly, the COVID-19 pandemic acted as a catalyst for accelerating digital transformation and causing an increase in demand for media and entertainment software solutions. 

Now let’s look at the current state of the media and entertainment industry. We will explore how certain companies are working to understand their users better and evolve their digital experiences to meet new expectations and how you can too.

Impact of digital transformation in Media & Entertainment industry

Content consumption across media channels, devices, and demographics is rising. Due to unprecedented internet usage and the adoption of internet-enabled devices, consumers are now at the heart of a digital ecosystem; they actively create, distribute and consume content. The new-age consumer not only demands what they like, which format they like but also wants to customize the content to their preferences. Now media and entertainment companies can no longer rely on the extent of their reach to appeal to the masses. 

According to research from PwC, by 2023, revenues for the global entertainment and media industry are expected to reach 2.6 trillion.

media & entertainment pwc research

As everyone continues to research and invest in Media and Entertainment digital transformation strategies, it’s also worth looking at what’s drives the urgency. Several waves of digitalization have already transformed the industry. Social media, more intelligent personalization, ad-free viewing experience, video on demand (VoD) like the OTT solutions, and online gaming continuously compete for users’ attention. There is an ever-increasing demand for at-home digital media like OTT platforms which are now expanding to new demographics and locations. PwC research indicates that the Global OTT revenue will increase at a 13.8% CAGR to US$72.8bn in 2023, with its growth supported by the rising consumer appetite for video streaming services, consumption rising in mature markets, and rapid expansion in less developed regions. 

In this hypercompetitive market, having great content is no longer enough. Media and entertainment companies need to integrate their content into high-quality user experiences, better viewing recommendations, more personalized and relevant adverts, omnichannel experiences across devices, and online tools that nurture loyalty. New technologies like Artificial Intelligence, Machine Learning, Augmented and Virtual reality, 5G, Big Data Analytics, and voice-enabled assistants act as facilitators for new business models in the media and entertainment industry.

3 important Media & Entertainment industry trends

Well, if you surf the web, you are likely to see a deluge of content talking about the emerging trends in the entertainment and media industry and their implementations. We will focus on the less famous, still essential elements of media and entertainment digital transformation.

1. Rise of Apps

When was the last time you watched TV without checking out social media or other apps on your phone? It’s no longer enough for consumers to consume one mode of entertainment. Many brands are discovering the power of multi-channel in keeping viewers engaged. Most media viewing comes from mobile phones, so companies are looking to create apps. Research by Smart Insights indicates that 80 percent of internet users own smartphones. With the ability to access mobile anytime, anywhere, apps are much more convenient tools to access social media, news, movies, videos, and more. If you are in the media industry, it would be wise to develop an application to enhance customer experience and improve business efficiency.

2. Cloud Transformation

The digital world of media & entertainment requires massive bandwidth and other significant data management resources as consumers want to choose when and what they want on the internet. Also, Media and Entertainment companies are now struggling with legacy business models, information silos, and legacy infrastructure as they seek to understand how well their content and offerings fulfill the customer demands. And if not acted immediately, today’s consumers will move on to something else right away. To seamlessly handle these situations, media companies must quickly scale up resources to avoid losing their audience to improve customer intimacy and operational efficiency. Cloud transformation may provide the solution through highly scalable networks, advanced analytics, and enormous data storage capabilities.

3. Big Data Analytics

Do you know Facebook collects 500 TB of data daily, Google processes 3.5 billion requests each day, and Amazon draws 152 million instances of customer purchase data? Big data is rapidly becoming one of the driving forces behind the global economy and is underpinning every industry. The use of analytics has moved to the forefront to understand audiences in real-time and increase personalization and customization. Entertainment companies are trying to digitize this data to gain a 360-degree view of customers to stay close to them in a socially distant environment. As digital media becomes a significant source of entertainment, creators and distributors can derive massive gains in connecting to customers through Big Data Analytics. With robust consumer data and advanced AI-based analytics, media companies will be able to predict consumer preferences with more accuracy than ever before, leading to an increased ability to deliver finely-tuned personalized experiences.

custom media & entertainment software development solutions

How can Scalex help Media & Entertainment companies?

At Scalex, we help media and entertainment firms stay ahead by leveraging our digital product engineering capabilities, powered by Mobile, Cloud & Analytics. As a Digital Transformation company, Scalex has always been at the forefront of such revolutions providing solutions and services towards enhancing customer experience and improving business efficiency.

What does Scalex offer?

Application Development – Using agile software development techniques, testing services, and a DevOps approach, Scalex helps you build more robust products for your customers and take actions based on insights.

Cloud Transformation – We have helped several media and entertainment firms with legacy modernization by leveraging the power of Mobile and Cloud, resulting in improved customer experience. Our strategic partnership with Amazon Web Services gives you a rich choice of flexible and consistent cloud platforms.

Data Analytics – Data analytics helps you make better content, marketing, distribution, and user experience decisions. Scalex enables you to gather insights for personalized marketing and customer engagement management, helping drive new revenues in media.

Over the past five years, we have successfully delivered products to the leading organizations of the M&E industry that has given us access to the pulse of the sector while always staying agile. Contact us today! Start your digital journey with Scalex.


Many companies still haven’t redefined their relationship with their customers by using the emerging trends in the media and entertainment industry. Today, the transformation of the processes is inevitable to nurture the audience and survive the fiercely competitive market. Content available at the click of a button from anywhere and any device is the need of the hour. Leveraging the right technology to provide personalized content to the audiences’ preferences cost-effectively is required to operate in the digital M&E space.

As we look ahead, digitization will make sweeping changes in how content is consumed. It will play a pivotal role in bringing outdoor entertainment directly to consumers at their comfort. This era will likely go down into the pages of history as the golden age of M&E, where COVID-19 was challenging, but it accelerated digitization for the changing behavioral patterns.

About the Author

A Digital Marketer at Scalex, Nikita is devoted to her motto - to write simply and clearly about complicated things. Backed up with 6+ years of experience in marketing, she creates informative but exciting articles on technologies.

One Comment:

  1. It is essential for media and entertainment companies to bring together human expertise, analytics, and technology to succeed in a changing business landscape. I liked the main elements you have highlighted. Needless to say, apps are the future rather than any other trend. Good one!

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